FERC Sides with Venture Global LNG on Equipment Issues as Contract Disputes Escalate

(Reuters) — U.S. regulators on Friday said Venture Global LNG has taken adequate steps to correct equipment problems at a Louisiana gas-processing plant that has kept the company from delivering cargoes to long-term contract customers for two years.

The finding by the Federal Energy Regulatory Commission lends support to the U.S. liquefied natural gas exporter's claims that it has not fully completed a Calcasieu Pass, Louisiana, plant commissioning.

Venture Global LNG is fighting a half dozen contract arbitration cases from customers over the plant's problems. Shell, BP, Orlen and others say Venture Global has made billions of dollars while improperly withholding LNG cargoes by claiming the plant is not fully functional.

BP was not immediately available for comment on the FERC report. Shell and Venture Global LNG declined to comment.

"Venture Global team was approaching the diagnosis and remediation of the equipment performance in a careful, technically sound matter," FERC said in a status report.

Venture Global could become the U.S. second-largest LNG exporter be year-end when it is expected to begin producing the superchilled gas from another Louisiana plant, which will be the second-largest U.S. LNG facility by annual production volume.

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